10 Ways to Reduce Your Holiday Expenses

According to the National Retail Federation, holiday shoppers are expected to shell out an average of $750 this year, which is about 1 percent more than last year. Want to avoid the holiday credit crunch? Follow these 10 foolproof strategies to stay on budget, find the best deals, and spend wisely on gifts, food, and decorations so you're not wallowing in debt long after the presents are unwrapped.

Think Twice Before Signing Up for Layaway Programs

Think Twice Before Signing Up for Layaway Programs

In order to encourage purchases of hot-ticket items, big-box stores often offer layaway programs. This year, many companies are adjusting the fees that come with opening a layaway account: Wal-Mart lowered its open fee from $15 to $5 and Toys “R” Us is suspending its usual $5 service fee until mid-December. This may seem like a solution for the best Christmas ever but as personal finance expert Suze Orman says, “If you are struggling to buy something, what that normally says is you don’t have the money for it.” Additionally, down payments and any cancellation fees (which typically range from $10 to $15) still apply. If there is any question that you about paying the balance according to the store’s payment schedule, steer clear of this financing option.

Take Advantage of Stores with Price-matching Offers, but Keep the Impulse Buys in Check

Take Advantage of Stores with Price-matching Offers, but Keep the Impulse Buys in Check

For the first time, stores like Target and Best Buy are going to include online retailers in their holiday price match programs. Target will match select online competitors through Dec. 16, including Amazon.com, Walmart.com, and ToysRUs.com; and Best Buy will match prices on appliances and electronics found on Amazon.com, Apple.com, Walmart.com, and other e-commerce sites. “Retailers will match the price and take the hit, but they’ll get the benefit of your impulse buys,” says Marshal Cohen, chief retail analyst for the NPD Group. So stick to your holiday shopping list if you enter the store—retailers are masters at showing you something you don’t need but suddenly want. And remember not all stores honor price matching on Black Friday: Target’s fine print excludes purchases made from November 22 to 26 and Best Buy excludes purchases made November 18 to 26.